Del. Code tit. 6 § 4404

Current through 2024 Legislative Session Act Chapter 494

Section 4404 - Unlawful practices

Section 2513(b)(2) of this title notwithstanding, in connection with any door-to-door sale, it is an unlawful practice within the meaning of § 2513 of this title for any seller to:

(1) Fail to furnish the buyer with a fully completed receipt or copy of

any contract pertaining to such sale at the time of its execution, which is in

the same language, e.g., Spanish, as that principally used in the oral sales

presentation and which shows the date of the transaction and contains the name

and address of the seller, and in immediate proximity to the space reserved in

the contract for the signature of the buyer or on the front page of the

receipt if a contract is not used and in bold-faced type of a minimum size of

10-point, a statement in substantially the following form:

"YOU, THE BUYER, MAY CANCEL THIS TRANSACTION AT ANY TIME

PRIOR TO MIDNIGHT OF THE THIRD BUSINESS DAY AFTER THE DATE OF

THIS TRANSACTION. SEE THE ATTACHED NOTICE OF CANCELLATION

FORM FOR AN EXPLANATION OF THIS RIGHT."

Beginning 1 year after the effective date of this section, such statement

shall be printed in an ink of a conspicuous color other than that used for the

rest of the contract and/or receipt.

(2) Fail to furnish each buyer, when signing the door-to-door sales contract

or otherwise agrees to buy consumer goods or services from the seller, a

completed form in duplicate, captioned "Notice of Cancellation," which shall

be attached to the contract or receipt and easily detachable, and which shall

contain in 10-point, bold-faced type the following information and statements

in the same language, e.g., Spanish, as that used in the contract:

"NOTICE OF CANCELLATION

.....................................................................

(Enter date of transaction)

You may cancel this transaction, without any penalty or obligation, within 3

business days from the above date.

If you cancel, any property traded in, any payments made by you under the

contract or sale and any negotiable instrument executed by you will be

returned within 10 business days following receipt by the seller of your

cancellation notice, and any security interest arising out of the transaction

will be cancelled.

If you cancel, you must make available to the seller at your residence, in

substantially as good condition as when received, any goods delivered to you

under this contract or sale; or you may if you wish comply with the

instructions of the seller regarding the return shipment of the goods at the

seller's expense and risk.

If you do not agree to return the goods to the seller or if the seller does

not pick them up within 20 days of the date of your Notice of Cancellation,

you may retain or dispose of the goods without any further obligation.

To cancel this transaction, mail or deliver a signed and dated copy of this

cancellation notice or any other written notice, or send a telegram,

to................................. ., at ........................................................................

(Name of seller) (Address at seller's place of business)

........... . not later than midnight of........... ..

(Date)

I hereby cancel this transaction.

.............. .

(Date) ............................................."

(Buyer's signature)

(3) Fail, before furnishing copies of the "Notice of Cancellation" to the buyer, to complete both copies by entering the name of the seller, the address of the seller's place of business, the date of the transaction and the date, not earlier than the third business day following the date of the transaction, by which the buyer may give the Notice of Cancellation.

(4) Include in any door-to-door contract or receipt any confession of judgment or any waiver of any of the rights to which the buyer is entitled under this chapter including specifically the right to cancel the sale in accordance with this chapter.

(5) Fail to inform each buyer orally, at the time the buyer signs the contract or purchases the goods or services, of the right to cancel.

(6) Misrepresent in any manner the buyer's right to cancel.

(7) Fail or refuse to honor any valid Notice of Cancellation by a buyer and within 10 business days after the receipt of such Notice, to (i) refund all payments made under the contract or sale; (ii) return any goods or property traded in, in substantially as good condition as when received by the seller; (iii) cancel and return any negotiable instrument executed by the buyer in connection with the contract or sale and take any action necessary or appropriate to terminate promptly any security interest created in the transaction.

(8) Negotiate, transfer, sell or assign any note or other evidence of indebtedness to a finance company or other third party prior to midnight of the 5th business day following the day the contract was signed or the goods or services were purchased.

(9) Fail, within 10 business days of receipt of the buyer's Notice of Cancellation, to notify the buyer whether the seller intends to repossess or to abandon any shipped or delivered goods.

6 Del. C. § 4404

60 Del. Laws, c. 543, § 1; 70 Del. Laws, c. 186, § 1.;